Crisis forces a halt to jeepney production
Crisis forces a halt to jeepney production
MANILA, Philippines (AP): Rising costs have forced the
Philippines' pioneer "jeepney" maker to halt production after 44
years, threatening the gaudily decorated vehicles' dominance of
the country's potholed roads.
The jeepney, created from surplus U.S. Army jeeps after World
War II, became a symbol of Filipino ingenuity and can-do
attitude.
But its pioneer maker, Sarao Motors Inc., was unable to
overcome the economic difficulties of the 1990s and shut down
production on Monday, laying off 250 workers, company Vice
President Edgardo Sarao said.
Sarao's father, Leonardo Sarao, and his uncles started
building jeepneys from surplus American jeeps after the war in a
rented garage.
They extended the bodies, built steel roofs, installed
parallel benches and opened the backs for easy access for
passengers. As they received more and more orders, the business
grew, prompting the elder Sarao and his brothers to establish the
company in 1956.
The first vehicles carried six people in the back and two
beside the driver in front. The passenger capacity grew over the
years, but the basic design remained.
For decoration, drivers mounted chromed horses on the hood as
a reminder of an earlier period when horse-drawn carriages
dominated Philippine streets. Later additions included rows of
decorative side mirrors, dozens of lights, powerful stereos and a
line of decorative whip antennas.
But critics say Sarao and dozens of smaller jeepney makers
failed to improve their designs or technology to keep up with
modern vehicles. In recent years jeepneys have faced increased
competition from Japanese-made air conditioned vans that also ply
the country's roads.
Sarao said high production costs, low sales, rising wages and
fewer licenses given by the government for jeepney operators
forced the company to first decrease production from a peak of 18
vehicles a day in the mid-1980s to just three a day for a three-
day work week this year.
He said the falling Philippine peso has doubled the price of
secondhand engines, transmissions and steering wheels imported
from Japan. No longer made from jeeps, current jeepneys are based
on parts from Japanese secondhand trucks.
A standard 18-passenger Sarao jeepney now sells for 316,000
pesos ($6,800) while a deluxe stainless steel version costs about
390,000 ($ 8,400).
"We have been hit hard this past year, we could not bear it
anymore," Sarao said. "It's painful for some of the workers. Many
have grown white hair with us and probably could not find work
elsewhere."